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Wednesday, 3 February 2016

TUBE INVESTMENTS OF INDIA LTD CONSOLIDATED Q3 NET PROFIT UP BY 28%

Chennai, 2 February 2016: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the financial results for the quarter and half year ended 30th September, 2015.

Consolidated Results

The Company’s consolidated Net profit after minority interest and share of profit from associate for the quarter was at INR 112 Crores, against INR 87 Crores for the corresponding quarter in the previous year.

Cholamandalam MS General Insurance Company Ltd., a general insurance subsidiary of the Company registered a Gross Written Premium (GWP) of INR 614 Crores during the quarter as against INR405 Crores, a growth of 52%. PAT for the quarter was at INR 34 Crores as against INR 39 Crores compared with corresponding quarter in the previous year.

Shanthi Gears Ltd., a subsidiary company in the Gears Business, registered a revenue of INR 43.19 Crores for the quarter as against INR 42.98 Crores for the corresponding quarter in the previous year. PAT for the quarter was at INR 5 Crores as against INR 4 Crores.

Cholamandalam Investment & Finance Company Ltd, an associate company in the financial service business, disbursed INR 4260 Crores during the quarter compared to INR 3082 Crores in the corresponding quarter of the previous year, a growth of 38%. Consolidated Profit after Tax (PAT) for the quarter was at INR 148 Crores against INR 113 Crores for the corresponding quarter in the previous year, registering a growth of 31%.

Standalone Results

TII’s Revenue for the quarter was at INR 902 Crores as against INR 942 Crores for the corresponding quarter in the previous year. The profit before interest, exceptional items and tax for the quarter was at INR 53 Crores as against INR 47 Crores for the corresponding quarter in the previous year. The PAT for the quarter was INR 16 Crores as against a loss of INR 0.44 Crores (which includes INR 11.73 Crores of exceptional item pertaining to compensation under Voluntary Retirement Scheme) for the corresponding quarter in the previous year.

During the quarter, the Company sold non-operating assets which generated a profit of INR 1.25 Crores.

Mr. L. Ramkumar, Managing Director said, “The Revenue during the quarter was lower compared with corresponding quarter in the previous year partly due to lower pricing of some of our products. While Bicycle business was affected due to slow down in the market place, the Engineering and Metal Formed Products divisions improved their profitability by cost control and better product mix”.

Review of Businesses

Bicycles

The Bicycle division registered a revenue drop of 10% during the quarter compared to with corresponding quarter in the previous year. The market conditions were muted. Order from a Government agency mitigated the drop to some extent. The revenue for the quarter was INR 287 Crores as against INR 318 Crores for the corresponding quarter in the previous year. Profit before Interest, Exceptional items and Tax for the quarter was INR 9 Crores as against INR 12 Crores for the corresponding quarter in the previous year.

Engineering

The Engineering division registered a revenue drop of 6% during the quarter compared with corresponding quarter in the previous year largely due to reduction in prices of our products. The revenue for the quarter was INR 393 Crores as against INR 419 Crores for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was higher at INR 24 Crores as against INR 19 Crores for the corresponding quarter in the previous year.

Metal Formed Products

This division has registered a growth in revenue of 7% during the quarter compared with corresponding quarter in the previous year. The revenue for the quarter was INR 255 Crores as against INR 238 Crores for the corresponding quarter in the previous year. Profit before Interest, Exceptional Items and Tax for the quarter was higher at INR 23 Crores as against INR 19 Crores for the corresponding quarter in the previous year.

About Murugappa Group

Founded in 1900, the INR 269 Billion Murugappa Group is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Parry Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 32,000 employees. For more details, visitwww.murugappa.com